Growing complexity hampers Manufacturing companies.

It's tough out there in underdeveloped markets. Despite the size and remarkable growth of emerging markets, a surprising number of companies are falling short of achieving their business goals, Deloitte finds. In fact, just 47 percent of the more than 440 senior executives surveyed by Deloitte's Global Manufacturing Industry Group said their companies had been extremely or very successful in meeting their revenue goals in emerging markets.

Why? "Most likely it's because the complexity of their business continues to increase, and it's a daunting task to integrate and manage their emerging market operations," suggests Gary Coleman, global managing director for Manufacturing and partner, Deloitte & Touche USA LLP.

Coleman presented the findings of the survey during the international winter business forum in Davos, Switzerland. He observed that, "Companies are locating higher-value activities such as complex production, sophisticated research and development (R&D) and sales and marketing operations in emerging markets.

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"While they were originally seen as low-cost locations for routine operations, [emerging markets] have been moving up companies' value chains," he explains. "With this move, the challenge to provide innovative products and services that capture market share in the rapidly growing emerging markets intensifies. This intensity brings complexity, which, for many companies, makes it even more difficult to achieve their original emerging market goals."